Wide Applications and High Local Demand Make it the Most Opportune Time for LCD Panel Manufacturing in India Says Frost & Sullivan

NewswireToday - /newswire/ -
Mumbai, India, 2009/06/18 - Television sales have been rapidly surging; the Indian mobile handset market continues to grow despite turbulent economic conditions and the usage of industrial displays is also on the rise.

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Thus, the applications of liquid crystal display (LCD) panels and awareness about it have drastically increased in India. Commonly used applications including the television, monitor, and mobile handset use thin-film transistors LCD (TFT-LCD) panels, whose penetration rate is growing substantially compared to the traditional displays.

New analysis from Frost & Sullivan (electronics.frost.com), Analysis of the Indian LCD Panel Market, finds that the total market for LCD TVs and mobile phones to grow at a CAGR of 51 percent and 18.4 percent respectively from 2008 to 2010. During the same period, the total addressable market for LCD TV and mobile phones is expected to grow at a CAGR of 57.8 percent and 17.9 percent respectively. The Total Addressable Market (TAM), represents local production of these products. Higher local manufacturing of products that deploy LCD panels portends strong demands and appreciable growth for the LCD panels market in India.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Ravinder Kaur/ Nimisha Iyer, Corporate Communications, at ravinder.kaur[.]frost.com/ niyer[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

The evolution of the Indian manufacturing ecosystem is a new trend, with several manufacturers considering India as an export hub for various product lines. Local demand, export prospects, government initiatives, wide applications, and low set-up costs during the economic slowdown favor LCD panel manufacturers, making it an ideal time for the LCD panel manufacturing in India.

"India is geared up for LCD panel manufacturing," says Frost & Sullivan Research Analyst Santhosh B Krishnamoorthy. "Increased LCD product line consumption, growth in the electronics industry despite temporary slackening and the expansion of manufacturing industries in India will be strong growth boosters for the Indian LCD panel markets in the next 1 to 4 years."

LCD displays are the solutions to the rising need for lower power-consuming, space-saving, and better displays. LCD has a high penetration rate compared to the traditional display technologies and is here to stay in the market. In India, LCD displays are soon expected to exceed cathode ray tube (CRT) displays in sales. No other Flat Panel Display technology is as price competitive as the LCD displays. It also offers better value, thereby paving the way for significant opportunities for LCD panel manufactures in the coming years.

Indigenous LCD panel manufacturers are expected to face the challenge of competing against the established global manufacturers who enjoy higher economies of scale in their manufacturing facilities abroad. Manufacturing from a still developing ecosystem will be a major challenge. Price fluctuations in the industry also have to be cautiously addressed.

"In this highly competitive market, manufacturing from a still developing ecosystem, the lack of an experienced workforce, and price competition in a fluctuating environment pose challenges," avers Krishnamoorthy. "However, local presence and market positioning should be strategically used to establish the industry and overcome challenges."

The burgeoning demand for various products including the mobile phones, TVs, computers etc in India is driving product manufacturers to set up manufacturing units in the country to address local demand. The demand from product manufacturers for LCD panels is bound to justify local manufacturing of LCD panels. By having local LCD panel production, suppliers can address the demand through optimal pricing and establish a reactive supply chain. This will benefit the LCD panel manufacturers in the long term.

"Quality products at a low price, a good supply chain, and brand equity are some of the key strategic factors in the LCD panel market in India," concludes Krishnamoorthy. "To have an edge over competitors, it is critical for LCD panel manufacturers to provide extremely competitive prices, immediate availability, and effective customer support."

Analysis of the Indian LCD Panel Market is part of the Electronic Devices Growth Partnership Services program, which also includes research in the following market: Electronic Devices and Market Engineering. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

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